1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nikdorinn [45]
3 years ago
9

Carlton Company uses the percent of sales method to estimate its bad debt expense. Based on past experience, the company estimat

es 2 percent of credit sales to be uncollectible. At the end of the current year, the company's unadjusted trial balance shows Accounts Receivable of $245,000 and Credit Sales of $900,000.
Required:
Prepare the necessary december 31 adjusting entry by selecting the account names from the drop down menus and entering the dollar amounts in the debit or credit columns.
Business
1 answer:
Vlada [557]3 years ago
8 0

Answer:

Debit Bad debt expense with 18,000 ; and Credit Allowance for doubtful accounts with 18,000

Explanation:

Bad debt expenses = $900,000 × 2% = $18,000

The adjusting journal entries will look a s follows

<u>Details                                                                Dr ($)              Cr ($)     </u>

Bad debt expense                                           18,000

Allowance for doubtful accounts                                           18,000

<em><u>To record the uncollectible Accounts Receivable                                 </u></em>

You might be interested in
Dr. Bernanke argued two problems contributing to the financial crisis included:________.
nydimaria [60]

Answer:

D. banks reliance on long term funding; and increased use of non-standard mortgages such as fixed rate, 30- year mortgages.

Explanation:

Dr. Bernanke argued that financial crisis is due to the banks involving in non standard mortgages which are fixed rate mortgages but they are not regulated. The bank provides loans and mortgages to people based on the standard regulations which need to be followed. They financial crisis took place when the mortgages were provided on non standard terms.

4 0
3 years ago
Which of the following is a feature of a good budget?
kiruha [24]

B and C, are bad feautures. A makes more sense, than D, so A should be your answer.

4 0
3 years ago
Read 2 more answers
What are four positive aspects of franchising for a business start-up? Why are they important ? .
wel
The primary advantages for most companies entering the realm of franchising are capital, speed of growth, motivated management, and risk reduction
3 0
3 years ago
In March 2012, Yoshiro Inc.. decided to retire an outstanding bond issue before maturity. The coupon rate on the bond issue was
natali 33 [55]

Answer:

  • b. Cash from Financing Activities  
  • d. Bonds Payable
  • e. Net Income

Explanation:

Bonds are a form of long term debt and in the cashflow statement this goes to the Financing section. A retirement of bonds would reduce cash and this would come from the Financing activities.

Bonds Payable will also decrease because the bond that is being retired will reduce the number of bonds payable that the company has to pay off.

Finally the Net income will reduce as well to reflect the loss on bond retirement. The bonds were issued at a discount owing to interest rates being higher than the coupon rate in 2011 but on the day the bonds were retired they were selling at a premium with interest rates at 4%. The company paid more than they received and this loss will reduce the net income.

3 0
2 years ago
Answer ASAPWhich of the following is not a part of your credit report?
Sunny_sXe [5.5K]
C hopefully this helps
6 0
3 years ago
Other questions:
  • Harry needs to make a presentation on endangered species of animals. Which presentation software elements can he use to display
    14·2 answers
  • In which industry is monopolistic competition most likely to be​ found?
    9·1 answer
  • What steps did fdr take in response to the economic improvements of 1935 and 1936?
    12·1 answer
  • There are arguments for and against the alternative exchange rate regimes. a) List the advantages of the flexible exchange rate
    5·1 answer
  • What is the principle of indemnity? Why is this principle important?
    9·1 answer
  • Walter Utilities is a dividend-paying company and is expected to pay an annual dividend of $1.25 at the end of the year. Its div
    9·1 answer
  • When an F5 (category 5) tornado hit a town in southern Missouri, the people that lived there needed the basics: food, water, and
    10·1 answer
  • Determine whether each of the following transactions contributes to the calculation of GDP as total spending, then, identify the
    14·1 answer
  • Tile &amp; Grout (T&amp;G) contracts to resurface the insides of the pools at WaterWorld Park. T&amp;G knows that without the re
    14·1 answer
  • 8. Problems and Applications Q8
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!